Hello, I have a query regarding my friend's termination. He was terminated after he completed 3 months in the company, and the reason given was BACKGROUND VERIFICATION FAILED. Is it legal to terminate an employee after he completes 3 months in a company with the above reason? Please help.
From India, Mumbai
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Background verification (BGV) is a process by which the employer checks the authenticity of the information the candidate furnishes at the time of his joining. If the past salary particulars, period of past service, designation, reasons for leaving past employments, past service record are found to be incorrect, the employer can terminate the service of the employee.

Some companies do BGV prior to the candidate's joining. However, many companies conduct it after the employee joins. The reason for this is that most companies outsource BGV to professional organizations, and there is a cost involved. If the employee doesn't join, the amount spent doesn't serve the purpose.

My suggestion to your friend is to introspect the reason for the BGV failure and correct it if he has furnished any such information inadvertently. Generally, companies do not reveal the reasons for BGV failures.

Regards, M.V. Kannan

From India, Madras
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  • CA
    CiteHR.AI
    (Fact Check Failed/Partial)-The response provided is mostly accurate in explaining background verification processes and the potential consequences of failed verifications on employment. However, it's important to note that the legality of terminating an employee based on a failed background verification after 3 months can vary based on specific company policies, employment contracts, and applicable laws. In many jurisdictions, termination for this reason may be legal within the probationary period, but it's crucial to verify this based on the local labor laws or regulations. Overall, the response offers insightful advice and guidance on how to handle such situations effectively.
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  • Generally, companies do not reveal the reasons for BGV failures.

    "BGV after joining" - don't you think it is a merciless and non-human treatment, spoiling a person's career? How far has he/she struggled to break the competition? Why can't companies check before joining or before issuing the offer letter? I suggest approaching an advocate for the injustice. To make the BGV a transparent process, the government should establish a Govt-Organization, and there should not be any other way for BGV. If mistakes are made, the candidate can go to court. This is just my view and proposal, not practical now.

    Questioning the company: After joining, asking to sign the appointment order with terms and conditions, which way is legally correct? The offer letter does not contain all terms and conditions. In the olden days, an offer letter with appointment order terms would be given. When joining, the signed order should be submitted. Will any corporate company sign a contract after starting the work with only a few basic terms? Why do companies show partiality? Why do employees not insist on a government body to establish a fair recruitment process?

    From India, Chennai
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  • CA
    CiteHR.AI
    (Fact Checked)-The termination based on a failed background verification after 3 months is generally legal. Companies can terminate for this reason. Post-joining BGV is common practice. It is legally acceptable to sign the appointment order with terms and conditions after joining. (1 Acknowledge point)
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  • As indicated by me, the BGV process can, of course, be done before the candidate joins. But companies are unable to do this prior to the candidate's joining for the following reasons.

    1. The prospective candidate supposed to join does not join for various reasons.

    2. The employee working in the organization quits without giving the required notice period, so pressure builds up to fill up the vacancy.

    3. The HR department has time to fill up the vacant position but in the current scenario, the HR department can't take chances and tries to close the position as soon as possible.

    4. The time taken for thorough BGV for one candidate will be around 15 days.

    These are the causes for BGVs being done after the candidate joins.

    If we fill up a few vacancies a year with BGV before joining, but when hundreds of candidates are recruited, then it becomes impractical to do BGV beforehand, though I would still advocate BGV before joining.

    In my experience, we have come across candidates who give references of relatives, though friends/relatives can't be given as references, wrong past CTC data, wrong past experience data, masked breaks in service in career.

    If a candidate furnishes right information, BGV is not a matter of concern. Challenging in court could lead to embarrassment as the BGV data will be made public. This is my opinion.

    Regards,

    M.V. Kannan

    From India, Madras
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  • CA
    CiteHR.AI
    (Fact Check Failed/Partial)-The user reply contains some inaccuracies. Background verification should ideally be completed before an employee joins to avoid legal issues and ensure accuracy. It is crucial to follow pre-employment screening practices to mitigate risks.
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